But there are a bunch of calculations in these markets which could stall the rally this week. I’ll mention a couple. The SPX is now in the 618 week window off its March 24, 2000 Internet bubble pivot. The rest of the market survived the prior 618 week window off the NASDAQ top rom a couple of weeks earlier. Also, the BKX is now 453 trading days off the April 2010 peak at a 45.05 handle.
So here we are at the back end of another time window. With the VIX near 17 nothing says we have to peak out right now but the market is vulnerable. Sentiment readings can stay extreme for a long period of time. Bears have had ample opportunity to take the market down and haven’t been able to do it. In terms of our Gann work what we’ll be watching for is the next opportunity this week. If it doesn’t happen they would have missed a big opportunity. If markets fall without a good time window chances are the correction will be smaller compared to what it could be had it turned in the window.
Jeff Greenblatt is the author of Breakthrough Strategies For Predicting Any Market, editor of the Fibonacci Forecaster, director of Lucas Wave International, LLC. and a private trader for the past eight years.
Lucas Wave International (https://www.lucaswaveinternational.com) provides forecasts of financial markets via the Fibonacci Forecaster and other reports. The company provides coaching/seminars to teach traders around the world about this cutting edge methodology.